Depreciation Calculation Example 7
Asset was acquired 10 periods into fiscal year using Date of Purchase basis. Date of Purchase method based on Periods. Asset was entered three periods "late" (after purchase) with "Catch-Up" depreciation applied in current period.
System-Wide Configuration: "Catch-Up' in Current Period
| "Date of Purchase" Config: | Current Pd Depreciation Based on # Pds in Purchase Year (12) |
| FY: | Calendar Year (January to December) |
| New Asset: | Acquired July 2000 |
| Cost: | $ 12,000 |
| Depr Method: | S/L 5 (20% each year),.Date of Purchase Basis |
| Annual Depr: | (Years 1 to 5) 12,000 * 20% = 2,400 |
| Current FY/Pd: | FY: 2000 Pd: 10 |
| Depr Yr/Pds Remaining: | Depr Yr:1 Pds Remaining: 9 (at time of initialization) |
Basic Formula
| (Including Curr Pd)
(# Pds PYTD * Annual Deprec) - PYTD Depreciation ____________________________________________ # Pds in PY (Including Curr Pd) |
= Current Pd Depreciation |
|---|---|
User Misses First Three Periods in Purchase Year
| (Including Curr Pd)
(# Pds PYTD * Annual Deprec) - PYTD Depreciation ____________________________________________ # Pds in PY (Including Curr Pd) |
= Current Pd Depreciation | |||
|---|---|---|---|---|
| FY00 Pd 10 (PY1, Pd 1,2,3,4) | [(4/12) * 2400] | - 0.00 | = | 800.00 |
| FY00 Pd 11 (PY1, Pd 5) | [(5/12) * 2400] | - 800.00 | = | 200.00 |
| FY00 Pd 12 (PY1, Pd 6) | [(6/12) * 2400] | - 1000.00 | = | 200.00 |
After the sixth period in purchase year, purchase year crosses fiscal year.
| (Including Curr Pd)
(# Pds PYTD * Annual Deprec) - PYTD Depreciation ____________________________________________ # Pds in PY (Including Curr Pd) |
= Current Pd Depreciation | |||
|---|---|---|---|---|
| FY01 Pd 1 (PY1, Pd 7) | [(7/12) * 2400] | - 1200.00 | = | 200.00 |
| FY01 Pd 2 (PY1, Pd 8) | [(8/12) * 2400] | - 1400.00 | = | 200.00 |
| FY01 Pd 3 (PY1, Pd 9) | [(9/12) * 2400] | - 1600.00 | = | 200.00 |